Weekly Editors' Picks Weekly Editors' Picks (0415-0421)

"Weekly Editor's Picks" is a "functional" column of Odaily. On the basis of covering a large amount of real-time information every week, a lot of high-quality in-depth analysis content will also be released, but they may be hidden in the information flow and hot news, and pass you by.

Therefore, every Saturday, our editorial department will select some high-quality articles that are worth spending time reading and collecting from the content published in the past 7 days. You bring new inspiration.

Therefore, every Saturday, our editorial department will select some high-quality articles that are worth spending time reading and collecting from the content published in the past 7 days. You bring new inspiration.

Now, come and read with us:

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Investment and Entrepreneurship

Why Arthur Hayes Liquidated Bitcoin When The US Treasury Account Balance Bottom?

The account balance (TGA) of the U.S. Treasury Department is less than 100 billion U.S. dollars, and the U.S. tax data in April is lower than expected. If the current fiscal is not enough to support the repayment of U.S. debt interest, the market expects the U.S. to increase the U.S. tax rate by another 31.4 trillion U.S. dollars in the second half of this year. The U.S. debt ceiling, and the re-issue of U.S. debt will drain the dollar liquidity in the market, so it will not be conducive to risky assets, so it is negative for Bitcoin.

Perhaps it is the path dependence in 2022, or it may be grasping the life-saving straw in the spiritually deficient market. It has to be admitted that "water release and interest rate hike" has become the most important narrative that dominates the current encryption market.

ETH surges after Shapella upgrade; trading activity shifts to Asia-Pacific hours; Bitcoin’s correlation with U.S. stocks diverges, and BTC has not moved in line with risky assets this year as crypto-specific factors like low liquidity and seller exhaustion also played a role in price performance.

This article discusses the underlying logic and investment methodology of the success of Meme Coin

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The STEPPS Model: 6 Characteristics of Viral Marketing

The success of a meme project is inseparable from: good narrative - social currency, hotspot connection - incentive, emotional resonance - emotion, celebrity effect - publicity, utility - practical value and communication carrier - story.

Meme Valuation = Narrative + Digital Valuation = Narrative size (the scope that affects the market) + emotional arousal frequency + celebrity effect (KOL recognition and ability to bring goods) + SOV (Share of Voice: media proportion share), etc. A combination of factors.

Memes have their own unique life cycle, they usually come and go quickly, and the process of viral marketing is usually an S-shaped curve, that is, it is slow at the beginning and speeds up when it expands to half of the audience , and slowed down rapidly when approaching the maximum saturation point of the market.

Meme frenzy often appears in the middle and late stages of a bull market. Most people in a bull market make money, and the market sentiment is prone to fomo, which will also bring many new players and new funds into the market. Therefore, if you want to deploy a meme project with excess returns, you can look for Alpha in the early stage of the bull market and when the independent rise of BTC starts.

It is necessary to look for projects with low market capitalization and low unit price, and judge the size of the bubble according to the market volume and listing conditions.

DeFi

Back to 2020 DeFi Summer? This article sorts out the recent high APY mines

Woody, partner of Hengxin Capital: The current stage is essentially the same as the DeFi market in 2020. The current situation can be understood as the "hungry and thirsty" of funds, so they are willing to rush into some hot spots, which shows that funds are still willing to rush . Theoretically, it reflects the trend of Fast Money, but they are very fast-paced. When they know the news, they are more daring, but they are also easy to be RUG. After all, not every agreement and project can be done.

Identifying arbitrage opportunities in DeFi through code

The article requires a certain technical foundation. First, it briefly introduces some decentralized exchanges and aggregators, and discusses the arbitrage that may exist in them, and then analyzes the principle of arbitrage from the contract code level (but whether it can be successful in practice depends on many Factors, such as gas, node speed, etc.).

Multi-angle comparative analysis of four potential native stablecoins: GHO, crvUSD, dpxUSD, HOPE

Among the over-collateralized native stablecoin projects, some are based on existing protocols, such as GHO, crvUSD and dpxUSD, which can guarantee the stability of their prices to a greater extent through the over-collateralization model based on existing liquidity . At the same time, some over-collateralized stablecoin projects have achieved a cold start through model innovation, such as HOPE, which uses the method of locking reserve assets and the creation of the DeFi ecosystem to maintain the price stability of stablecoins by establishing reserve pools and usage scenarios.

Various asset providers are starting to step onto the stage of the RWA tokenization narrative, creating demand for tokenization in industries such as real estate, precious metals, luxury goods, climate, private/public fixed income, emerging markets, and trade finance. As DeFi infrastructure projects mature, RWA tokenization has been further developed and innovated.

Web 3.0 

Although the regulation of RWA is still uncertain, the long-term potential of this narrative is still very large, capable of reshaping the DeFi landscape and bringing value to the crypto market and traditional markets. So keep an eye out for further developments in this narrative.

Why is the Web3+AI narrative worthy of attention?

Ethereum and scaling

Blockchain technology may help AI technology develop for good. AI smart contract audit helps blockchain security; AI will help improve Web3 user experience and enhance Web3 governance capabilities.

Ethereum and scaling

LD Capital: An in-depth analysis of Grayscale Trust, an opportunity or a trap to buy ETH with a 50% discount?

Based on the status of the core infrastructure of Ethereum Web3, we are optimistic about the rebound performance of Ethereum Trust (ETHE) in the Grayscale trust product matrix in the future potential bull market.

The reason for the current long-term discount is mainly related to the fact that the product cannot be redeemed directly, and the product structure is similar to that of a closed fund. In addition, the limitation of arbitrage opportunities, the forced liquidation of large speculators, the discount of opportunity cost, and the impact of competitive products are also factors. Reason; There are seven situations that can cause the discount to narrow or even disappear: including open redemption of ETH spot (divided into two cases: redemption obtained SEC exemption and ETF conversion application passed), obtaining redemption exemption, product dissolution and liquidation, and Grayscale’s own redemption The development of buying and arbitrage strategies and the improvement of market confidence, as well as the reduction of opportunity cost, will help to repair the discount.

A complete cycle should follow the cycle of "premium→parity→discount→parity→premium". At present, ETHE products have only completed half of the cycle. We believe that if you bet on a potential bull market, ETHE has better flexibility. Since the beginning of the year, ETHE The increase is 1.7 times that of ETH to prove this; however, historical data calculations show that the risk-reward ratio of ETHE is not good. If you plan to hold ETHE for a long time, you may have to do some targeted income enhancement strategies. Otherwise, if the bull market cannot come quickly, its performance Risk of underperforming the broader market.

"Pledge War" is coming soon? This article takes stock of the characteristics, advantages and disadvantages of mainstream LSD protocols

LSD is a leveraged bet on the price of ETH. Lido will capture more than 50% of the LSD market by 2025. Yields will be reduced to about 3.5% in equilibrium. Fully diluted price-to-sales (P/S) ratios for LSD agreements are generally high.

This article explores how L2 affects value capture on L1?

L2 attempts to solve the scalability problem of Ethereum L1. They make a profit by compressing data and "reselling" Ethereum's block space.

By 2023, about 62% of the fees paid by users in Arbitrum have been paid to Ethereum validators. Since its inception in 2021, 64% of all fees have been paid to Ethereum validators. Meanwhile, 80% of the fees generated through Optimism are now owned by Ethereum validators. Since its inception in 2021, 74% of all fees have been paid to Ethereum L1. It's a win-win situation.

Not all L2s are created equal. Sidechains like Polygon operate more like their own L1, while leveraging Ethereum for ultimate security and settlement guarantees. Rollups like Optimism and Arbitrum really rely on Ethereum for consensus, security, and data availability.

ETH will continue to capture most of the value generated by L2. L2 still has a lot of upside. A handful of L2s are likely to capture most of the value in the second layer of the technology stack.

Ethereum's L2 growth and scalability will destabilize the value proposition of L1 competing chains with similar scalability approaches - such as Cosmos, Avalanche, and Polkadot. But Solana is significantly different because it takes a single approach to scaling (settlement and execution are bundled).

Building a public chain based on Avalanche has no new ideas and technical advantages, and the threshold for issuing NFT is relatively low. The white paper does not provide technical details, mainly focusing on concepts, so there is no special technology or influence of Lamina 1. Outstanding advantage.

hot spots of the week

secondary titlehot spots of the weekIn the past week, the Arbitrum ecology heat continued, Sui (Ecological project collection》），Twitter,) Attention has increased, and some meme coins have risen astonishingly ("PEPE and AIDOGE skyrocketing review: how to seize the meme season?Inc. has changed its name to X Corp.and doing business in its name, Twitter hasSupport Bitcoin market data queryAnd add a risk warning,SpaceX starship has failed to launch, DOGE fell below 0.086 USDT in the short term, slow fog:No direct evidence of a massive MetaMask leak, MetaMask responds:It is not true that 5,000 ETHs were stolen due to a loophole, but the source of this loophole is being researched；

, analyst:Serum's official tweet has been renamed to Luka and all previous tweets have been deletedIn addition, in terms of policies and macro markets,U.S. House Committee Publishes Draft Stablecoin Bill，, the New York State Department of Financial Services has adoptedVirtual Currency Business Regulatory Cost Assessment RulesCoinbase CEOSEC issued Wells Notice to Bittrex in March, which will close its U.S. operations on April 30,；

: Prepare for a years-long court battle with the US SEC, or consider moving Coinbase out of the US,Hong Kong court defines cryptocurrencies as property "capable of being held on trust" in Gatecoin-related case，In terms of institutions, large companies and top projects, Forbes:，Flex Yang：Bhutan's sovereign wealth fund Druk has secretly poured tens of millions into cryptocurrencies over the past year，The bankruptcy protection of PayPal Financial Group was heard in the Singapore High Court, officially opening the in-court reorganization procedure，Uniswap Foundation: How to deploy more than 4.37 million ARBs will be discussed in the next few weeksHOPE has now officially landed on the Ethereum mainnetUniswap Foundation: How to deploy more than 4.37 million ARBs will be discussed in the next few weeks“Magi”，, a16z Crypto launched，Binance will deactivate existing deposit addresses and labels on selected networks, users need to obtain new deposit addresses，Privacy Network Iron Fish Mainnet Officially Launched，TON Announces Launch of Ethereum Bridge，Privacy Network Iron Fish Mainnet Officially LaunchedAptos Launches Delegated Staking Feature

Uniswap passes the "Deployment Accountability Committee" proposal, to supervise the operation and development of V3 deployed on other chains;NFT and GameFi fields,StarbucksThe NFT series "First Store Collection" on the Polygon chain will be launched soon, Huang Licheng briefly "Exit the NFT field，"back，With "Editor's Picks of the Week" series...well, another week of ups and downs.

With "Editor's Picks of the Week" seriesPortal。

See you next time~